caroline: i am caroline hyde.

ed: this is "bloomberg technology." caroline: the dow hit silicon valley harder. we talk technicals. edit: amazon web services ceo discusses the new in-house chips and the latest on restructuring. caroline: twitter is no long policing covid misinformation. elon musk takes aim at the app stores. first, let's check in on these markets because it was another down day. we were focused on the macro picture, more focused on what fed chair powell has to say tomorrow. what will he hint in terms of policy and will it impact valuations on the nasdaq 100? we are off the lows of the day. the s&p 500 managed to push off its lows. still close down by .10%. volumes relatively muted. i'm looking at this particular etf, the technology select etf sector. notable analysis saying this is

going to underperform the s&p etf. from a technical perspective, it looks like we are likely to go back to november lows, 3% lower versus managing to break through a technical support level fraud in -- brought in in april. i'm also watching crypto because notably, the dollar was on the higher side -- the lower side even though we were concerned about the picture of the federal reserve and what will be happening in the next couple of days in terms of fed policy. looking at bitcoin, it has been lowered by .6% but we managed to break up a little bit on this day trade. notable given it was a reflection around hopes of covid policy in china. ed: i want to get straight to the earnings -- crowd strike in the cybersecurity space absolutely sinking after its fourth-quarter revenue forecast came in significantly below expectations citing macro headwinds.

how interesting is that, around the conversation in the software space, earnings continuing to be a factor. when you look at the individual names on the nasdaq 100, the outperformer's were u.s.-lifted chinese technology shares. names like jd.com, there is optimism on wall street the protest we see across china will result in some easing of covid restrictions which would boost china tech. when have you heard the word lordstown in a couple of months? it is up big time because it has regulatory approval to start selling the few ev's it has made to consumers. amc networks down after confirmation it would cut staff my 20% and have an executive shuffle. apple down for a third straight day. the worst run of declines. there is still concerned about what's happening and how the iphone 14 production will be

impacted. you see that playing out in equity markets, down 4.6% or so. caroline: can't fight the fed and you can't fight apple. we did see tech stocks sinking today. i want to dig into some of those daily moves. let's bring in rob cantwell, a portfolio manager at up holdings. great to have you with the show. we go out with our daily poll and we wanted to ask our audience whether they are currently selling big tech and what are the reasons around that , whether they are bring it -- blaming the economic slowdown or political headwinds. actually we got some bullish sentiment. they are not selling, they are buying in the majority. are you buying at this point? rob: it's tricky to go on a technology platform and ask if they want to buy more technology. we are finding plenty of good deals in the space but it's a fascinating time to be an

investor in big tech, small tech, medium tech because big tech has gotten so big it is now more than 25% of the s&p 500. it has become intertwined with macroeconomic factors and statistics and that has not been the case for the past 20 years. google has not had to care about currency headwinds until about six months ago. you have all these tech analysts scrambling because of the earnings calls this past quarter everybody , missed due to currency. now you have tech analysts that have to become currency analysts said it has thrown things up side down. it has created plenty of opportunities for those willing to wait some of this stuff out because you want to be buying when folks are selling. ed: we've been saying this line for weeks about higher rates discount the future profits. that's why we care about the fed in the context of the tech sector. what's the bigger risk to the technology sector, the federal

-- the fed or inflation? rob: interest rates affect a lot of things. they can push your multiple down from the discount factor you just discussed. it also pushes down your growth rate and a lower growth rate drives lower multiple. if you look back long enough, higher interest rates means lower margins. you are talking about a triple hit of your discount factor, margins for the company and growth rate expectations. that is why you have seen stocks like meta trade down 70%. they obviously have other factors as well. where we sit right now, interest rates are more of a risk to the global economy that inflation. inflation has started coming down but we are in a low growth world and most central banks are saying they are not done raising interest rates. so there is not a single analyst forecasting a re-acceleration in growth because until we see interest rates have paused, that affect interest rates have on

growth for the worldwide economy is going to continue to be an issue. caroline: the impact raising rates has on the labor market in particular is the other side of the coin and a sacrifice the federal reserve is willing to swallow at the moment. we see the layoffs coming thick and fast to the tech sector. is that how you want to see companies controlling costs? are we seeing them be in the -- be the canary in the coal mine in this sweeping into other sectors? robert: job layoffs are a tricky one. you saw with the onset of covid every company laid off to any employees in six months later, they were scrambling to rehire again. you get these strange boom and bust cycles were companies fire, profit margins start improving and then they start chasing employees all over again. recent history tells us companies are likely going to far again in these races -- in these recent layoffs. this socially accepted average,

for the amount of work -- workforce you can let go, we found it to be a little peculiar and was more reflective of companies just trying to hide in the average and not stand out by not firing but not trying to stand out by over firing their overall workforce. in aggregate, volatility in an economy is a risk because it doesn't allow managers to plan and execute their strategies as smoothly as they could if there was less volatility. certainly in a very volatile moment. ed: we know it has been a tough year. look at the nasdaq 100 and we our down 30% as of tuesdays close, the worst year since 2008. if there are any bright spots in the technology sector, where are they? robert: what is remarkable is the usage of technology remains incredibly strong. elon reporting record usage sign-ups at twitter, that's not unique to twitter.

it's happening at instagram and tiktok. there are a couple of other transitions happening -- the cloud computing 1 -- data dog is a well-positioned company making money and expanding margins. stripe is a private company, those are areas where even though there has been a slowdown in growth as a whole, you are seeing the technology has such an advantage over the incumbents of the growth rates of those companies have remained under trading. those are the areas we are most focused on. ed: some optimism from one voice in the investment community. thank you. let's turn to twitter which scrapped its policy preventing the sharing of false or misleading information about covid-19. that was done quietly, announced on the company's website over the holiday weekend has been effective since november 23. sarah frier is here with more details. why was this announced so quietly?

sarah: i think what we are seeing is this company is not as focused on being proactive in its communications except directly through elon musk. he is the one tweeting out what is happening with twitter, explaining his thoughts, almost stream of consciousness to the public. when it comes to these policy changes, we might not see a broader announcement like we have an past. they are not staffed to do it. they laid off the entire communications staff. this is a private company right now and we as reporters have to ask questions of our sources, and pay attention to what the leadership says. caroline: dramatically reducing the size of the team tackling child sexual exploitation. that is one of the key stories on the bloomberg terminal today. your team driving that home. talk to us where he is therefore focused. if he's not focused on some of

the content which many brands are worried about, he seems to be worried about where people are sitting in the office and how they are coming together. sarah: i think he is absolute concerned with making sure there is a sense of momentum, a sense of all the engineers trying to build the next iteration of the product he wants to launch. a new form of verification very soon and he's crossing his fingers and doesn't cause the public disasters last time it happened. i think he is getting a trial by fire in understanding how social media businesses work. we saw him talk in the last couple of days about the app stores and how he thinks they are unfair. this is a moment where the moderation stuff we will see fall by the wayside a bit as he tries to prove he can grow twitter. ed: i want to bring you some headliners -- oath keepers leader rhodes was convicted of

the january 6 sedition charge. the jury has been considering the charge against that militia group and its leader for a number of weeks, but that is the headline crossing the bloomberg terminal. we will bring you more as we get that. interestingly, more headlines crossing the bloomberg -- twitters former trust and safety boss speaking publicly saying he fears not enough twitter employees left to police content. that's coming from somebody who knew the trust and safety side well. that is concerning. sarah: police is a weird way to put it. it's about having the expertise to know where to draw the line between something being an opinion or a necessary thing they want to say to their audience versus something that could be harmful, that could instigate violence, that could cause issues. when you don't have subject

matter experts in various areas of content, you may not be able to make that determination. twitter, by cutting a lot of it staff, we reported today the team networks on child exploitation content, highly specific expertise to be able to weed that stuff out has been cut in half. you will end up with a lot of trouble and one thing we reported, and in fact you helped us report the story -- the team working with governments trying to understand what to do about content takedown requests from certain governments or asking for data on users, that team has been decimated. they are going to be in a tough spot with a lot of these very difficult decisions going forward. caroline: thank you so much for all of that. now we want to bring you back to some of the breaking news we

just heard -- we understand the oath keeper leader rhodes has been convicted of the january 6 seditious charge. a federal jury was weighing in not only against stewart rhodes, but four other associates. this is the first person convicted of seditious conspiracy since 1995. the charge calls for up to 20 years behind bars and five defendants face several other charges. we will bring you all the breaking news regarding the january 6 implications. coming up, we want to be talking about the fall of ftx. was it due to too much centralization? can crypto do away with centralization altogether? we will dig into that, next. this is bloomberg. ♪

caroline: let's get to those all-important crypto markets. worries about contagion from the implosion of ftx still hangs over the digital asset class. nevertheless, they are pushing higher on tuesday. ed: we found a little momentum across a number of digital tokens. the main session, we spill over into the following day, finding our feet. i want to get straight to the bloomberg guarantee crypto index. it trades similar to the equity markets in an equity index. it has an opening and closing point and it is weighted based on the biggest digital tokens by market value. largely bitcoin, ether, tether. but since the original tweet when we first had those

revelations raised about ftx, we are down more than 25% across the basket of cryptocurrencies. the question posed in the story today is as more and more of the fallout becomes unveiled, and which direction does this index go? it still has some downward momentum and it looks like we will have something serious to snap out of this downward trend in this broad basket of crypto. caroline: let's get more into the ftx collapse. there has been much handwringing. it's got a wide impact on the growth of crypto at large. many have tried to highlight that their demise underpins the fact that decentralized finance is needed because ftx was to centralized. take a listen to tim draper and what he had to say about it. >> ftx is very centralized.

it was all centered around this one guy. when you centralized anything, bad things can happen. caroline: let's talk about all of this with our next guest, the cofounder of the collective intelligence project. unlike tim draper, don't think centralization is inherently bad. but in your own filing for your project, you did take some read granted funds from the ftx future fund. they've given money to a lot of organizations. you are an experiment research organization. tell us why the future fund would have interest getting to democratic governance that you study. >> there's a lot of overlaps between that question about centralization and decentralization. there is something about democratic affective governance and self determination enabled by these technologies that we are able to do more decentralized, less intervention

oriented structures and we were experimenting with democracy and technology and got granted funds from ftx in that process. it speaks to this question whether centralization is good or bad. in my point of view, accountability is a big part of the goal in decentralization and centralization and it's often more focused on the degree as opposed to the type of decentralization. so you ran the quote of tim draper saying ftx is too centralized. but comparing that to banks, they are very centralized and regulated as such. it's quite complicated to call something purely centralized and say all of its faults are down to that. ed: we've had this debate over centralized and decentralized, but you've introduced us to a new term, poly centralism. what is that? divya: it is a bit of an academic term.

but we don't want either decentralization or centralization. the term is a bit what it sounds like -- having many centers. the problem is centralized systems often carry a grain of decentralization in them. a great example of this is the internet. the protocol that underpins a lot of commune occasion capabilities of the internet is decentralized and has-beens successfully decentralized. but that happened through this complex polycentric system of regulatory agencies and private companies that sprung up and allowed for that to stay in place. however, the internet is not decentralized. most of us spend our time on the internet on five websites. how did that happen? many of the layers centralized because there was no clear polycentric structure keeping them decentralized. decentralization tends to

centralize without checks and balances. instead of allowing chaotic centralization from chaotic decentralization, you have checks and balances. this underpins federalism and the u.s. government and these things that say there should be something between the local and federal. caroline: is it regulation that helps with the transparency with inevitably centralized parts? how do you get to the utopia of poly centralism? do you need fundamental rules in place to drive it? divya: that's a great question. regulation is one thing, but many successful polycentric systems whether you think of it -- wikipedia has a polycentric system and the word comes from a nobel prize winner who looks at self-governing systems, not

regulation or state run systems at all. a lot of this is not just rules but can you have different kinds of institutions? that's how the standard-setting process of the internet currently runs. poly centralism won't work if it is just rules top down. the crypto industry, where it goes next is unclear, but to succeed, it will need to develop this polycentric ability to not just invite regulation but have different groups at the table. otherwise a lot of these tend toward centralization or plutocracy. ed: the cofounder of the collective intelligence project. we will bring you the latest venture capital roundup from around the world. this is bloomberg. ♪

ed: time for talking tech -- today a venture capital roundup starting with farm robots. that is what cleveland avenue, a vc firm founded by a former mcdonald's ceo, leading a a funding round for the agriculture tech start up. this, as farmers increasingly rely on technology to produce enough food for a growing population while also facing a shortage of work. and pressure to reduce their environmental impact. while the venture market is in the middle of a downturn, there's plenty of emerging players. the seed starts has launched a platform along with a swiss based holding company. the goal to farm as much as $500 million of new funding into emerging and diverse vc managers in africa, asia, the middle east, and central eastern europe. staying in the world of global vc's, global evolution is scouting for measures from asia

and the middle east. they've raised 500 million dollars with a target of $750 million. expected to close in the first quarter of 2023. caroline: loving how you follow the money. that eight of u.s. ceo discussing layoffs, discussing the chip sector and competition. this is bloomberg. ♪

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>> welcome back to bloomberg technology. i'm caroline hyde in new york. the conference is underway in las vegas on the company

announcing it will build its own chips for a of u.s. customers looking for high-performance computers. emily chang is in san francisco to join me with more. emily: joining us now as aws ceo adam solesky, conference off to a good start. thank you for joining us. you've got a pronounced economic downturn happening, layoffs happening across the board, including at amazon, but still record cyber monday sales. what is the main message you want customers to take away from reinvent this year? >> great to see you, emily. we are so excited to be here in las vegas at our 11th reinvent with over 50,000 customers and partners. 300,000 registered around the world for the virtual part of the event. i think probably the biggest message here at reinvent is that companies and all sorts of organizations continue to transform themselves using the

cloud. that in particular times of economic uncertainty, that that's the best time to lean in because the cloud is the most efficient place to be running cost savings, at least 30% for enterprises who move close to the cloud. cloud is also the place to be flexible. you can grow and shrink your capacity at will, and it's a place to innovate or you can do more with fewer resources. so, precisely because of the economic uncertainty and not despite it, we see a lot of companies leaning in. emily coleman amazon has reinvented cloud technology, what is the next era of reinvention actually look like? adam: i think we are still early in cloud adoption, just despite the fact that a ws is a significant leader in the cloud space. did pioneer starting in 2006. depending on what data you look at, 10% of i.t. workloads have

moved to the cloud. that's a lot of dollars because there's a lot of i.t. in the world. but is still only a small percentage and we believe in time, most i.t. will move to the cloud. i think that we are seeing companies leaning in and a lot of acceleration happening, tremendous interest in our continuing to improve price-performance for customers, interested in data, machine learning and analytics and interest in specialized purposed for different vertical industries and a business function. emily: if this is a recession, it's a first for aws as a company within a company. amazon has seen this before but aws hasn't. you have big company sales but also big company problems. what are you cutting and where? where are you pausing and why? adam: aws was founded -- launched in 2006, so we were

already in business for the great recession in 2008 and 2009 and it was really interesting. we didn't know if that would help us or hurt us. it turned out i think it was actually a significant tailwind because a lot of companies that did not have money for capital expenditure were easily able to move to the cloud and get moving quickly on aws with operating expense and able to turn capacity on and off. i don't know we will have a recession now and i don't know how that will impact our customers and us if we do, there's a reasonable hypothesis that a lot of companies could turn to the cloud in the case of a recession. we are very focused on helping companies be extremely cost-effective. in good times and any times, we want customers to spend as little as they possibly can for any particular unit of work. we know there are more workloads to the cloud if the economics make sense. emily: andy jaffe has said that

cuts will continue into next year, and the plan is to lay off thousands of corporate employees. how many employees are coming from within the aws? is there a hiring freeze? how are you changing your spending strategy? adam: we have taking a pause in aws on hiring new employees. the expanded tremendously over the past several years. very high employee growth for a number of years in a row. really to support our business growth and to support all the things that our customers want to do. we have a significant amount of resources all across the company and development, sales and marketing. we are well-positioned right now to make sure we are being really efficient with all the people we've hired. i think we will have the capacity of people that we need for right now to get a lot of things done for our customers. we will take the pause, but i think we will be able to deliver.

emily: on the last call, you said the growth rate of aws trailed off in q3, has that continued into q4? you mention financial services, crypto, mortgages, are those still the weaker business lines and are those still bucking the trend? adam: as we said on the last call, there's a mix of headwinds and tailwinds and with d.c. customers, some tightening their belts, which i mentioned earlier, just getting efficient with their cloud spat and they should be doing that all the time and we help them do that all the time but more are doing it now. you see other customers leaning in because of the cost efficiencies because of the flexibility in their overall usage and spending. i think it's a mix of these things. i think regardless of whatever happens in the short-term, in any medium-term scenario, the secular trend of a very strong long-term adoption of the cloud is going to continue.

emily: data centers consume a lot of water and amazon web services have promised to replenish the water it consumes. but you are still not disclosing the amount of water that aws actually uses, which is something that google does do. why not release that number when the industry and some of the stakeholders really want more transparency? adam: we are a leader in sustainability. we've released a lot of statistics. we want to be net zero carbon by 2040. we will be 100% renewable energy by 2025. we are 85% of the way there towards that goal. there's lots of steps we've released in this week we made a pledge to be water positive by 2030, meaning that we are going to return more water to the communities then we use in our direct operations by 2030. and we release our actual energy efficiency usage stat this week. we consume zero point 25 liters

of water per kilowatt hour in our datacenter, that is not a stat that every other cloud provider releases. those who do do not have as good performance as we have. we are the leader in the cloud space with that and we will continue to release more data as the months and years go on. i think it will be good transparency from aws and i think we will continue to be a leader and actually build towards a sustainable future, including with water. emily: you are continuing to develop your own chip technology, which is what we talked about in the past, you are promoting it at reinvent and it makes a lot of sense, i wonder how it impacts her relationships with suppliers. why wouldn't nvidia give better prices or better supply to other competitors, to google, to microsoft, when you've got your own silicone in the making? adam: we have great relationships with all of those chip manufacturers, including the ones you mentioned at in

till, nvidia, etc., and we will continue to have those great relationships and sign long-term deals with many of those suppliers. aws is large now. last quarter we were in $82 billion a year run rate and we have tremendous capacity needs around the world. our customers have a vast heterogeneity of different means. there are lots of different use cases for those chip vendors to be working with us to service our customers. and there will be increasing use cases and big-time utility for our own custom-designed chips as well. emily: ceo of a of u.s. joining us from reinvent in las vegas, good luck with the rest of the conference. back to you. ed: coming up, the plot thickens as we learn about more entanglements within the ftx empire. this is bloomberg.

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caroline: block fine is going through its own bankruptcy put proceedings is looking to collect money from the other bankrupt empire, including from alameda research to the tune of $680 million. here is the explanation of the dispute and the huge amount of documents you been going through. >> there has been a lot of legal documents because there are multiple bankruptcies as well as allow superior let's bring you through this. because you have money that block five was owed as you said, $680 million, and then ftx had

also had a credit line over to block five, they are owed $275 million, they had a credit line in which they were not able, they were not able to get the entire extent of their money, and it comes to the money that they lent to alameda, interestingly, block five is seeking that collateral and doing it in the means of a separate regulatory filing. and i'm holding here block files lawsuit against emergent fidelity technologies. that is the company that bought the robinhood shares. this entity is not included in the filings, which is what makes this interesting. the defendant in the lawsuit is capital markets, which had held the collateral that is being disputed here, and according to the financial times, which saw the loan documents between block by an emerging technologies, emerging developing technologies, the collateral is robinhood shares. so they want them back because this is what was liquid inside

the sam bankman-fried empire. this is not an end and be in the bankruptcy proceedings would it comes to ftx. however, that draws a lot of questions in terms of how block by gets paid and how other people get paid because block five months and get paid to pay everybody else. >> this is deeply confusing for me. ultimately, are you hearing from lawyers how likely they are to get a significant amount of the 680 million thereafter back? >> it's an interesting question because 680 million in the scope of billions of dollars is a significant amount of money, especially when you look at the rest of what block fries creditors are owed. remember, a large group of creditors are owed 725 million or so. that means that 650 would help on that regard, but something interesting to bring you to the background, another day with the bankruptcy experts and lawyers, and something interesting they told me is one thing that hasn't happened is creditor committees coming together, which could become very interesting, and

this it instance if you watch a normal bankruptcy play out on wall street, you say big creditors or hedge funds band together to get their money back or fight against each other. but in this case because the depositors are key, you might see more aligning of interest between these big institutional investors on the customers himself that are working to get the money back. caroline: i have a feeling this will go on and on. she will go back to the bankruptcy experts, i'm sure, but there's a lot of money being passed around some very interconnected woven parts, let's switch gears and talk about layoffs, because amc network, responsible for shows like breaking bad, walking dead says it's planning to lay off 20% of its u.s. workforce. this follows an announcement early on tuesday that his chief executive has stepped down less than three month after taking the reins, it's become the latest media company rock by loss of viewers to streaming services such as netflix and disney +. coming up, we will get digging

deep into the chip sector into chinese exposure of u.s. giants. the cfo is going to be joining us, the changing semiconductor chip landscape in the middle of these geopolitical tensions. this is bloomberg. ♪

ed: now to the fast-changing power struggles in the semiconductor chip industry. major companies like apple and amazon are jumpstarting plans to make in-house chips for their products as geopolitical tensions get in the way of manufacturing, covid lockdowns and worker protest that apples assembly plant in china have pushed back delivery times for

the iphone 14 pro models in the u.s. as long as 37 days. now, white house trade restrictions with china are creating more for chipmakers and chip equipment makers, lam research for examples as a could lose nearly half of its china revenue in 2023 because of those new policies, for more, we bring in lamb cfo doug bettinger at their credit suisse annual technology conference in arizona, let's get to it, how do you navigate a world where the u.s., your home country, has policies in place that prevent you selling to china, your biggest potential market? doug: what i knows there were technology lines drawn, some of the most advanced processing capabilities now requires a license to be able to ship to china, which presumptively is going to be not granted. so with that has done is, as we look into the year, it has

impacted $2.5 billion from revenue that has gone away from customers impacted by that. the regulations are what they are, you have to comply with them at the end of the day and that's exactly what we are doing. we just finished the best porter financially in the history of our company, our 42-year-old company just north of $5 billion in revenue. looking into the december quarter, seeing strength continuing their, in spite of the fact that we have to deal with these restrictions in terms of certain customers in certain technologies in china. ed: there is evidence that some names have been nimble. were restrictions in the licensing is hard to come by as you feared? : we knew this was coming, we had been interacting with the department of commerce, relative to how the industry works, how we were positioned in the industry, how the equipment sector supports the customer

base, so, it was an educated process is what i would describe , and we understood it was coming, and we were prepared for it. caroline: do you understand more could be coming, tougher rules coming from the united states, the tit for tat continuing? doug: i don't see anything incremental than what has already been communicated in out there, i think we are where we are and it's part of just doing business. china is going to be a little bit different, but the broad business is still pretty strong, and, we are doing our best to support our customers, no matter where they are geographically. >> you remain committed to china and as invested in that country going forward? doug: we have a lot of customers we are shipping to and china, some we no longer can, technology notes, some of those customers have process technology that doesn't need the license, so we still do business with them, and we are still

absolutely committed to the china region and everywhere our customers are buying equipment. ed: if you saw this coming, is that two to 2.5 billion sales for china conservative? at the picture be brighter than that? doug: it might be, i think things are going to evolve. what ended up happening is technology lines were drawn in the most advanced technology requires a license, wits -- which presumptively will be granted. it's possible that some of the customers would have technology nodes that don't require a license. those discussions and evaluations are underway. if there is some level of success there, then it won't be as big as the two to $2.5 billion that we described. that's the best i have for you right now. tuna have billion dollars of impact. caroline: you sound buoyant around the rest of the business. i'm interested about consumer

demand, particularly for consumer electronics. how is that affecting your business right now? what are the headwinds there? doug: as we look into next year, the semiconductor industry as a growth cyclical industry. we grow over time, i was looking at data the other day, between pre-covid and where we are today, from 2019 to 2022, semiconductor industry has grown by six he percent from a revenue standpoint. in the spending on the equipment has grown by nearly 90%. those are the trends i see continuing into the future, but it's a growth cyclical industry. so as we evaluate with next year looks like, we do believe -- as we talked our customers and understand with their plans are for next year, that there will be a reduction in spending next year of the two, 20 plus percent is what we see in terms of production with spending. it's a growth cyclical industry and we have to manage the company when that happens.

we've been doing it for a long time and we weren't -- we will manage it in accordance with the country. that's not what gets me excited. there was a study published this year that talked about a trillion dollars semiconductor industry by the end of the decade. that's exciting, that's what i see happening in this industry. the semiconductor industry is enabling all aspects of society. data is exploding. the are the plumbing underneath making that data useful. when in industry grows to a trillion dollars, there's a lot more equipment that will need to be put in place to be able to support that level. ed: real quick, because we will run out of time and a second, you make the machines that make the chips in simple terms. are you bullish about investment? talk to us about r&d period what will drive you forward technologically? doug: every year we have to bring out a new capability. what our customers want is beyond what we are able to do today. so you always have to be getting

better in this business and that's absolutely what we are doing. one of the things, when i look at the product portfolio, we are bringing up a brand-new platform that we are extremely excited about. it's a first bottoms up redesign of rs configuration in over 20 years. we are the leader in that technology and we have a brand-new tool capability coming out that the customers are excited about, as are we. caroline: we love a bit of excitement. lam research cfo peerless talk about what's going viral. a new activist at taking aim at big tech is using deepfakes to mock a lack of oversight. the ad bides a man vote -- shows a monopoly man being a deepfake of mark zuckerberg, who thinks congress. it will go up as lawmakers draft major antitrust legislation. tech companies, lobbyists have spent $100 million -- $120 million on advertising against

the bill. you've been making some great social content based on this very add. ed: talk about timing, the congress reset january 3, gop comes in, and want the bill move quickly by pelosi and schumer, that's why they put the deepfake out there. caroline: is it on instagram or tiktok? ed: on twitter at technology. caroline: wednesday we have do you idx ceo to discuss operations and leading crypto derivatives exchange. ed: don't forget to check out our podcast at your usual platforms carrier. this is bloomberg. ♪

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